Minister: “We take this matter very seriously”

Minister of Commerce and Industry Hanna KatrínFriðriksson says it is disappointing that Iceland and Norway have not been granted an exemption from the European Union’s safeguard measures concerning silicon metal imports.

The Icelandic government believes this decision is not consistent with the EEA Agreement, and no final position has yet been taken on the matter.

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Will have major negative impact on the national economy

The minister spoke during a parliamentary Q&A session this afternoon, responding to a question from Ólafur Adolfsson, a member of parliament for the Independence Party.

“It was reported by RÚV that Iceland and Norway will not be exempted from the EU’s proposed safeguard measures on silicon metal, according to a proposal announced yesterday by the European Commission. However, it should be noted that EU member states have yet to give their final approval,” said Adolfsson.

“The Commission has informed Icelandic and Norwegian authorities that the two countries will not receive an exemption from the proposed measures, which have been in preparation for some time.”

“Another blow” for the industry

Adolfsson asked whether this decision was yet another setback for what he called the government’s “value-creation autumn,” and how Iceland’s advocacy efforts in Brussels had been handled. He also asked about the potential impact on Elkem’s operations at Grundartangi.

Friðriksson confirmed that the government had only recently received the notification and that the matter was still in its early stages.

“We have received notification to the EEA Joint Committee about these proposed safeguard measures on ferroalloys. It is clear that the Commission’s current position is that Iceland and Norway will not be excluded. This is, of course, a disappointment,” the minister said.

She added that the government’s view is that this stance contradicts the EEA Agreement, and that Iceland remains firm in defending that position.

Plan A and plan B

“As the honourable MP mentioned, no final decision has been made yet — my understanding is that it will be taken on Friday. Until then, the Minister for Foreign Affairs and the Prime Minister, together with their teams, are in close dialogue with the relevant parties. Alongside our Norwegian counterparts, we are urging EU member states to reverse this position. That is plan A,” Friðriksson said.

She added that the government also has a plan B: to push for tariff quotas and minimum prices as mitigation measures that could substantially reduce the impact.

“We take this matter very seriously and are using all our resources. However, if plan A — securing an exemption — does not succeed, then plan B would at least ensure tariff quotas and minimum export prices, limiting the negative effects as much as possible. But it is too early to say anything definitive until the final details are known,” she concluded.